Top Cybersecurity Practices for Accounting and Finance Teams
Today, accounting teams do more than manage numbers. They also protect some of the most sensitive business information. Bank details, payroll, vendor information, tax documents, and login information are all attractive targets for cybercriminals.
With cloud accounting, Making Tax Digital (MTD) compliance, and online submissions, the risks are even greater. This is why cybersecurity is no longer an IT problem only. Finance teams have to understand and adopt security practices to protect financial data, stay compliant, and operate securely.
Here are the top cybersecurity practices that all accounting and finance teams should adopt in 2025.
1. Use Secure, Cloud-Based Accounting Software
Modern threats demand modern solutions. Cloud accounting platforms offer more security than local spreadsheets or desktop applications. A secure cloud system should offer:
- End-to-end encryption
- Multi-factor authentication
- Secured HMRC integration for MTD submissions
- Automated backups
- Ongoing system security
The use of secure cloud software is not only convenient, it also mitigates the risk of data loss, unauthorized data access, and unpatched vulnerabilities in the system.
2. Enable Multi-Factor Authentication (MFA) Everywhere
Passwords alone are inadequate. More than 80% of financial data breaches begin with weak or compromised passwords. MFA requires the following in addition to your account password:
- A code or approval from an authentication application
The presence of MFA significantly increases the possibility of unauthorized logins despite an attacker having the password.
3. Train Your Team Against Phishing Attacks
Phishing is the predominant cybersecurity threat for accounting professionals. Attackers primarily target finance teams because they are the ones that manage the money, vendor payments, and bank accounts. Train employees to recognize the signs of:
- A fraudulent invoice email
- Fraudulent requests for bank transfers
- Links or attachments that are suspicious in nature
- Payment requests that are overly urgent or unusual
Implement a policy that doesn’t allow the approval of financial transactions solely via email.
4. Use Strong Internal Access Controls
Not everyone requires access to everything. Just because it is easier doesn’t mean that is the right move. Without going into specifics, permissions should follow your organization’s role responsibilities, for example:
- Your AP clerk may need vendor data but not payroll records.
- Your accountant may need bank feeds but not admin-level settings.
- Your operations team doesn’t need access to full financial reports.
Data availability should be restricted through role-based access implementation techniques.
5. Encrypt All Financial Documents
Financial documents, including spreadsheets, bank statements, and invoices in PDF form, need protection even when in storage as well as when sent out. You must encrypt:
- Downloads
- Backed-up files
- Files sent out
- Cloud storage folders
- Bank statements
Even in the event of someone gaining access to the files, encryption assures the data remains safe and unreadable.
6. Move Away from Email Attachments
Email is a highly insecure method of transmitting finance information. Instead use:
- Secure document portals
- Cloud-sharing links that can be set to expire
- Authorized uploads to accounting software
- Encrypted file storage
Sending fewer email attachments is an effective way to avoid cyber threats, not to mention, email leaks.
7. Keep All Systems Updated & Patched
Cyber attackers love to target system vulnerabilities, and one of the most common is software that is not up to date. Things like a dusty old version of Excel, an unpatched operating system, or old accounting and bookkeeping software. Set rules on:
- Auto-updates
- Weekly software audits
- Deleting outdated software
- Using current safe browsers
Outdated tools leave data vulnerabilities, and malware threats can be activated through even the most innocuous actions.
8. Use Free MTD-Compatible Software with Built-In Security
If your company uses software to file VAT returns and/or manage tax online, ensure that they use secure MTD VAT compatible software.
Acxite has:
- Encrypted connections to HMRC bridging software
- Submission of MTDs Securely
- Safely import bank statements
- Role-based access
- Workflow data protection
Using accounting software that is free and secure helps you remain compliant while also working on MTD. This is particularly useful to a small business and a start-up.
9. Create a Disaster Recovery & Backup Plan
Even with all the protective measures in place, your company can still run into issues. Your team should always understand:
- How the financial data is backed up
- How quickly recovery can be done
- Who is in charge of recovery
- What needs to be done in the event of a breach
The business can maintain the recovery plan and avoid a significant loss.
Final Thoughts
If your finance team does not have the appropriate level of protection, this is a serious breach of your cybersecurity. With the rise of cyber threats and the digital tax system, MTD VAT return software, along with a growing reliance on cloud accounting, the need for this protection is becoming more and more apparent.